East meets West – Westliche Controllingsysteme in thailändischen Unternehmen

PRAXIS | Magazin

Management Control in allen Facetten Konferenz Review     

Lost Generations: Long-Term Effects of the COVID-19 Crisis on Job Losers and Labour Market Entrants,and Options for Policy*

This paper discusses the potential long-run effects of large-scale unemployment during the COVID-19 crisis in the labour market on vulnerable job losers and labour market entrants in the United States. The paper begins by contrasting measures of the scale of job loss during the crisis. These measures are paired with estimates from past recessions indicating that the costs of job loss and unemployment can reduce workers’ earnings and raise their mortality for several decades. Focusing only on a subset of vulnerable job losers, the potential lifetime earnings losses from job loss related to the COVID-19 pandemic are predicted to be up to $2 trillion. Related losses in employment could imply a lasting reduction in the overall employment–population ratio. For these workers, losses in potential life years could be up to 24 million. Even at the low range, the resulting estimates are substantially larger than losses in potential life years from deaths directly due to COVID-19. New labour market entrants are at risk to suffer long-term losses in earnings and mortality as well. Based partly on experiences in other countries, the paper discusses potential reforms to short-time compensation programmes and unemployment insurance, which could help limit the short- and long-term harm from layoffs going forward.     

Pigouvian Taxes in General Equilibrium with a Fixed Tax Redistribution Rule

This paper establishes existence of a first-best emission tax in a general equilibrium model with pollution, when the redistribution rule of the tax income is chosen fixed and independently of the Pigouvian tax rate. It is known that under standard convexity assumptions each Pareto efficient allocation can be implemented by simultaneously choosing a Pigouvian tax rate and an appropriate lump sum redistribution of income. In real politics, however, tax redistribution schemes are often restricted to a small feasible set. Nonetheless we show that for any given lump sum redistribution rule, being continuous in overall tax income, an emission tax rate exists that leads to a Pareto efficient equilibrium.     

Endorsers in Advertising: The Case of Negative Celebrity Information

Abstract

The use of celebrity endorsers is a popular executional device, but it is not without risk. The authors report three studies examining how negative information about a celebrity can affect the brand the celebrity endorses. Using an associative network model of memory as a theoretical framework, they considered four moderating variables: the size of the association set for the brand, the size of the association set for the celebrity, the timing of the negative celebrity information, and the strength of the associative link between the brand and the celebrity. In the first two studies, they used a fictitious but realistic celebrity endorser and in the third they used an actual celebrity. Negative information about a celebrity resulted in a decline in attitude toward the endorsed brand only for the fictitious celebrity. That general relationship was moderated in varying degrees by association set size, timing of the negative information, and the strength of the link between brand and celebrity.     

Introduction: methodologies of bounded rationality

The modelling of bounded rationality is currently pursued by approaches that exhibit a wide diversity of methodologies. This special issue collects five contributions that discuss different methodological aspects of these approaches. In our introduction, we map the variety of methodological positions with respect to three questions. First, what kinds of evidence do the respective approaches consider relevant for modelling bounded rationality? Second, what kind of modelling desiderata do the respective approaches focus on? And third, how do the respective approaches justify the normative validity of bounded rationality? To broaden the picture, we not only discusss the five contributions of this issue, but also include relevant positions from the extant literature.     

Nachhaltige Bioenergie nachhaltig nutzen!

Due to far developed technologies and high shares on the energy provision with renewable energies, bioenergy is often considered as a promising option for a sustainable energy system. But in the last years also critical voices could be heard, for instance with regard to particulate emissions or the production of biofuels. Against this background, various bioenergy-technologies for covering heating demand are analysed and compared with a fossil-supply system. Nine sustainability indicators are derived for each technology and exemplary settlement types of the residential sector. The article shows that the influence of demand side is crucial for the performance of bioenergy.     

Structural policies and growth: Time series evidence from a natural experiment

Documenting the long term impact of structural policies on economic performance has generated tremendous interest in the development literature. In contrast, contemporary effects of structural policies are difficult to establish. Structural policies seldom change sufficiently in the short run, and accepted instruments to control for endogeneity in cross sections are inappropriate for time series analysis. In this paper we utilize an eleven year panel of 26 transition countries to identify short term effects of structural policies that are large and significant. A ten percent change in the quality of structural policies (or the Rule of Law) towards OECD standards is shown to raise annual growth by about 2.5%. To control for endogeneity, we develop an instrument using the hierarchy of institutions hypothesis and find that it holds a robust explanatory power. We also document that early reformers reap the greatest benefits, but that it is never too late to begin structural policy reforms.